Henna Co. produces and sells two products, T and O. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This year, the company sold 50,000 units of each product. Sales and costs for each product follow. $$ \begin{matrix} & \text{Product T} & \text{Product O}\\ \text{Sales}\ldots\ldots\ldots & \text{\$2,000,000} & \text{\$2,000,000}\\ \text{Variable costs}\ldots\ldots\ldots & \text{1,600,000} & \text{250,000}\\ \text{Contribution margin}\ldots\ldots\ldots & \text{400,000} & \text{1,750,000}\\ \text{Fixed costs}\ldots\ldots\ldots & \text{125,000} & \text{1,475,000}\\ \text{Income before taxes }\ldots\ldots\ldots & \text{275,000} & \text{275,000}\\ \text{Income taxes (32\\% rate)}\ldots\ldots\ldots & \text{88,000} & \text{88,000}\\ \text{Net income} \ldots\ldots\ldots & \text{\$ 187,000} & \text{\$ 187,000}\\ \end{matrix} $$ 1. Compute the break-even point in dollar sales for each product. (Round the answer to whole dollars.) 2. Assume that the company expects sales of each product to decline to 30,000 units next year with no change in unit selling price. Prepare forecasted financial results for next year following the format of the contribution margin income statement as just shown with columns for each of the two products (assume a 32% tax rate). Also, assume that any loss before taxes yields a 32% tax benefit. 3. Assume that the company expects sales of each product to increase to 60,000 units next year with no change in unit selling price. Prepare forecasted financial results for next year following the format of the contribution margin income statement shown with columns for each of the two products (assume a 32% tax rate). 4. If sales greatly decrease, which product would experience a greater loss? Explain. 5. Describe some factors that might have created the different cost structures for these two products.

H.J. Heinz Company was founded in 1869 at Sharpsburg, Pennsylvania, by Henry J. Heinz. The company manufactures and markets food products throughout the world, including ketchup, condiments and sauces, frozen food, pet food, soups, and tuna. For two recent years, H.J. Heinz reported the following (in thousands):

$$\begin{array}{lrr} & \textbf{ Year 2 } & \textbf{ Year 1 } \\ \hline \text{Sales} & \$ 11,649,079 & \$ 10,706,588 \\ \text{Accounts receivable} & 993,510 & 1,265,032\\ \end{array}$$

Assume that the accounts receivable (in thousands) were $\$ 1,045,338$ at the beginning of Year 1.

The Limited Brands Inc. sells women's clothing and personal health care products through specialty retail stores including Victoria's Secret and Bath & Body Works stores. The Limited Brands reported the following (in millions) for two recent years:

$$\begin{array}{lrr} & \textbf{ Year 2 } & \textbf{ Year 1 } \\ \hline \text{Sales} & \$ 10,364 & \$ 9,613 \\ \text{Accounts receivable} & 269 & 267\\ \end{array}$$

Assume that accounts receivable (in millions) were $\$ 249$ at the beginning of Year 1.

b. Does The Limited Brands or H.J. Heinz Company have the higher average accounts receivable turnover ratio?

The table gives data concerning America’s 30 largest private companies of 2010 as rated by Forbes magazine.

$$\begin{aligned} &\begin{array}{clcc} \text { Rank } & \text { Company } & \text { (Revenue \$bil) } & \text { Employees } \\ 1 & \text { Cargill } & 109.84^{\mathrm{e}} & 130,500 \\ 2 & \text { Koch Industries } & 100.00^{\mathrm{e}} & 70,000 \\ 3 & \text { Bechtel } & 30.80 & 49,000 \\ 4 & \text { HCA } & 30.05 & 190,000 \\ 5 & \text { Mars } & 28.00 & 65,000 \\ 6 & \text { Chrysler } & 27.90^{\mathrm{e}} & 41,200 \\ 7 & \text { PricewaterhouseCoopers } & 26.57 & 161,718 \\ 8 & \text { Publix Super Markets } & 24.32 & 142,000 \\ 9 & \text { Ernst \& Young } & 21.26 & 141,000 \\ 10 & \text { C\&S Wholesale Grocers } & 20.40^{\mathrm{e}} & 16,600 \\ 11 & \text { US Foodservice } & 18.96 & 25,000 \\ 12 & \text { Pilot Flying J } & 17.00 & 23,000 \\ 13 & \text { HE Butt Grocery } & 15.10^{\mathrm{e}} & 75,000 \\ 14 & \text { Cox Enterprises } & 14.70 & 66,000 \\ 15 & \text { Meijer } & 14.25^{\mathrm{e}} & 72,200\\ 16 & \text { Toys "R" Us } & 13.57 & 68,000 \\ 17 & \text { Enterprise Holdings } & 12.60 & 68,000 \\ 18 & \text { Love's Travel Stops } & 12.60^2 & 6,700 \\ 19 & \text { Aramark } & 12.54^{\text {e }} & 255,000 \\ 20 & \text { Reyes Holdings } & 12.50 & 10,300 \\ 21 & \text { Fidelity Investments } & 11.49 & 37,000 \\ 22 & \text { TransMontaigne } & 10.23^{\text {e }} & 815 \\ 23 & \text { Performance Food } & 10.10 & 9,800 \\ 24 & \text { Kiewit Corporation } & 9.99 & 25,900 \\ 25 & \text { Energy Future Holdings } & 9.55 & 9,030 \\ 26 & \text { First Data } & 9.31 & 24,900 \\ 27 & \text { SC Johnson \& Son } & 8.96^e & 12,000 \\ 28 & \text { Harrah's Entertainment } & 8.91 & 69,000 \\ 29 & \text { Giant Eagle } & 8.61 & 36,000 \\ 30 & \text { Southern Wine \& Spirits } & 8.60 & 11,100\\ e = Forbes estimate\\ 2 = Company-provided estimate \end{array} \end{aligned}$$

Construct a box-and-whiskers display of the large company numbers of employees.

The point (7, -4) is 4 units to the right and 2 units below the point (3. 2).

Miami Infonautics, Inc., produces handheld Windows CE™-compatible organizers. Miami Infonautics markets three different handheld models: PalmPro is a souped-up version for the executive on the go, PalaCE is a consumer-oriented version, and Palm Kid is a stripped-down version for the young adult market. You are Miami Infonautics’ senior vice president of marketing. The CEO has discovered that the total contribution margin came in lower than budgeted, and it is your responsibility to explain to him why actual results are different from the budget. Budgeted and actual operating data for the company’s third quarter of 2017 are as follows:

$$\begin{matrix} \text{Budgeted Operating Data, Third Quarter 2017}\\ \text{ } & \text{Selling Price} & \text{Variable Cost per Unit} & \text{Contribution Margin per Unit} & \text{Sales Volume in Units}\\ \text{PalmPro} & \text{\$ 373} & \text{\$ 181} & \text{\$ 192} & \text{10.215}\\ \text{PalmCE} & \text{270} & \text{100} & \text{170} & \text{38.817}\\ \text{PalmKid} & \text{140} & \text{80} & \text{60} & \text{53.118}\\ \text{ } & \text{ } & \text{ } & \text{ } & \text{102.150}\\ \text{Actual Operating Data, Third Quarter 2017}\\ \text{ } & \text{Selling Price} & \text{Variable Cost per Unit} & \text{Contribution Margin per Unit} & \text{Sales Volume in Units}\\ \text{PalmPro} & \text{\$ 370} & \text{\$ 175} & \text{\$ 195} & \text{12.360}\\ \text{PalmCE} & \text{280} & \text{96} & \text{184} & \text{42.230}\\ \text{PalmKid} & \text{110} & \text{76} & \text{34} & \text{48.410}\\ \text{ } & \text{ } & \text{ } & \text{ } & \text{103.000}\\ \end{matrix}$$

1. Compute the actual and budgeted contribution margins in dollars for each product and in total for the third quarter of 2017. 2. Calculate the actual and budgeted sales mixes for the three products for the third quarter of 2017. 3. Calculate total sales-volume, sales-mix, and sales-quantity variances for the third quarter of 2017. (Calculate all variances in terms of contribution margins.) 4. Given that your CEO gets very angry if actual results differ from budget, you want to be well prepared for this meeting. In order to prepare, write a paragraph or two comparing actual results to budgeted amounts.

Find an equation for the surface comprised of all points equidistant from $D(0,0,6)$ and the xy-plane. Is this a quadric surface?

Plot the point whose polar coordinates are given. Then find the Cartesian coordinates of the point. (1, π)

How is glutamate produced from the TCA cycle?

[Related to the Apply the Concept on page 62] The Apply the Concept feature explains that the Feeding American charity asked three professors at the University of Chicago’s Booth School of Business to design a more efficient way of allocating food to local food programs and that the professors proposed changing the food allocation system to one that resembled a market.

Under the new system, the “shares” each food program receives would be the equivalent to what economic variable that consumers use in the marketplace to bid for goods and services?

Irish Paper Company (Irish) manufactures and markets various paper products around the world. Paper manufacturing is capital-intensive activity. A firm that does not adequately use its manufacturing capacity will experience poor operating performance. Sales of paper products tend to be cyclical with general economic conditions, although consumer paper products are less cyclical than business paper products.

(1) Depreciation expense was $306 million in 2012,$346 million in 2013, and $353 million in 2014. (2) During 2012, Irish purchased outstanding stock warrants for$201 million. It recorded the transaction by debiting the Common Stock account. (3) During 2012, Irish sold timberlands at a gain. It received cash of $5 million and a longterm note receivable for$220 million, which it includes in Other Assets on the balance sheet. (4) In addition to the preceding cash expenditures, Irish acquired property, plant, and equipment during 2013 costing $221 million by assuming a long-term mortgage payable. (5) During 2014, Irish resold treasury stock for an amount greater than its cost. (6) Changes in Other Assets are investing activities.

a. Prepare T-account work sheets for a statement of cash flows for Irish for 2012, 2013, and 2014.

Apple offers repair service on its products. Assume that Google wants to offer in-home and online services for computer repair and support. 1. What are some of the costs that Google must consider when deciding to offer these additional computer services? Are these costs different from what Apple must consider when offering additional new types of repair and support services? 2. Would variable or absorption costing be more useful to Google in analyzing whether repair and support services are profitable?

How is the transport of ammonia mediated by alanine and glutamate?

a. Write two half-equations for the reactions that take place when $\mathrm{Fe}^{2+}(\mathrm{aq})$ is oxidised by dichromate(VI) ions.

b. Combine the two half-equations and write the equation for the oxidation of $\mathrm{Fe}^{2+}(\mathrm{aq})$ by dichromate(VI) ions.

c. Work out the $E^\theta$ value of the cell made when the two half-cells in part a are connected and the reaction in part $\mathbf{b}$ takes place. Explain what this value predicts about the likelihood of $\mathrm{Fe}^{2+}(\mathrm{aq})$ being oxidised by dichromate(VI) ions.

d. How many moles of $\mathrm{Fe}^{2+}(\mathrm{aq})$ can $1$ mole of dichromate(VI) oxidise?

e. In a titration, $25.0 \mathrm{~cm}^3$ of an solution containing $\mathrm{Fe}^{2+}(\mathrm{aq})$ ions was completely oxidised by $15.30 \mathrm{~cm}^3$ of $0.00100 \mathrm{~mol~dm}^{-3}$ potassium dichromate(VI) solution.

i. How many moles of potassium dichromate(VI) are there in $15.30 \mathrm{~cm}^3$ of $0.00100 \mathrm{~mol} \mathrm{~dm}^{-3}$ solution?

ii. How many moles of $\mathrm{Fe}^{2+}$ were present in the $25.0 \mathrm{~cm}^3$ of solution?

iii. What was the concentration of the $\mathrm{Fe}^{2+}(\mathrm{aq})$ in the flask at the start of the titration?

The compound you identified in Problem $9$ resembles glutamate and might therefore competitively inhibit glutamate transamination. How would this affect citric acid cycle activity?